After contending with the pandemic, Western Europe emerged into a period of high inflation, with rates hitting levels not seen for decades in many of the region’s countries. This, in turn, set off a cost-of-living crisis for many consumers, dampening demand in the home and garden market in the final years of the review period. The difficult economic backdrop, combined with ongoing geopolitical uncertainty, are also clouding the outlook for the start of the forecast period.
This report comes in PPT.
Although most Western European markets saw a spike in demand for home and garden products in one of the pandemic years, they also generally saw declining sales in the other. The inflationary environment as well as consumers channelling spending away from physical to experiential purchases as COVID-19 restrictions were lifted then resulted in falling sales in all but Germany in 2022.
Industry players are increasingly using sustainable materials like bamboo, reclaimed wood or recycled plastic in their products. As well as in packaging and production processes, companies are also incorporating sustainability initiatives into other areas. For example, since late 2022, IKEA has been using the Seine River as its main delivery route into Paris. As well as taking commercial vehicles off the roads, it is also cutting CO2 emissions in IKEA’s logistics chain.
After the major gains made during the pandemic, growth in the e-commerce channel slowed dramatically in 2022. Consumers were keen to return to physical stores to see, touch and experience products prior to purchase, particularly big-ticket items in home furnishings. Home products specialists continue to dominate home and garden sales. Grocery retailers are popular for the one-step shopping they offer, particularly for smaller or less expensive products.
While elevated inflation rates will still be impacting some Western European home and garden markets at the start of the forecast period, positive annual growth rates are expected throughout 2022-2027 for the region as a whole. Sustainability and smart products will be among the key trends continuing to emerge in the coming years.
This project has a strict focus on sales to consumers only. Trade and professional sales are excluded. Home and garden refers to gardening, home improvement, homewares and home furnishings.
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